Tesla pulls into the restaurant business
June 7 2021 - Team Stockal
And they are ready to serve up more than just juice for your car
Tesla (TSLA) could be getting ready to serve up drive-in restaurant experiences, having just filed trademarks for restaurant services, including take-out, self-service, and pop-up restaurants.
But this isn’t exactly a surprise. Because as early as 2018, CEO Elon Musk had said that Tesla planned to open an “old-school drive-in, roller skates & rock restaurant at one of the new Tesla Supercharger locations in Los Angeles.”
Tesla taking a bite of the restaurant business comes on the heels of other players taking a bite of the EV market share that saw Tesla’s global share falling to 11% in April, from 29% in March.
With these hybrid charging stations, Tesla can offer an ecosystem that other EV players haven’t built yet. Tesla owners could soon tank up on some pressed juice while they juice up their Model S.
Meanwhile, stocks dipped on Thursday, catalysed by tech. In other news, AMC stock plunged 21% after the company sold millions of shares for the second time in the week.
It was a week of modest gains, however, as Nasdaq (IXIC) S&P 500 (GSPC) and Dow Jones Industrial Average (DJI) made less impressive gains of 0.48%, 0.61% and 0.66% respectively.
Grab your popcorn! AMC’s share sink paints a grim picture
It was an action packed week for the movie-theater operator as investors began backpedaling from AMC Entertainment Holdings Inc. (AMC) after it said that it plans to sell more stock, even as it cautioned potential buyers of its shares that they might lose all their money.
The stock surged over 120% on Wednesday, to hit a new peak of $70 with increased volatility as the exchanges halted trading several times during the session to close at $62.55 on Wednesday’s trade with a whopping 95% rally in one session.
The company made the most of this rally by selling around 11 million shares and helped them raise over $500 million additional capital. Post the sale, the stock dropped as low as $37.66 to close 18% lower at $51.34 during the week. It’s worth noting that the stock has rallied over 3000% in 2021 which is higher than what Gamestop (GME) experienced, which was the original darling of retail investors on reddit and other internet forums.
The recent drama aside, investing should always be about the bigger picture, and the reality of AMC’s business paints a pretty grim one: Given the current dynamic and the rise of video streaming, it’s safe to assume that the in-person movie-viewing experience is in extremely deep trouble if a complete re-imagining of the company’s business model isn’t on the cards.
It’s fair to say that an investor considering AMC stock as a long-term holding is likely experiencing recency bias.
Cybersecurity stocks could beef-up after the JBS ransomware attack
JBS, the world’s largest meat producer, was forced to shut down all of its US beef plants after a ransomware attack over the past weekend that halted output at facilities that supply nearly a quarter of America’s meat. This cyber attack was close on the heels of another big ransomware attack, against Colonial Pipeline Co. in May, that sparked panicked gasoline purchases across America.
Cybersecurity is more critical than ever, especially in a world already reeling from supply disruptions and bottlenecks caused by the coronavirus pandemic. The rise in attacks, therefore, could spell gains for key cybersecurity players like CrowdStrike (CRWD), Palo Alto Networks (PANW), and Cisco (CSCO) who could stand to benefit from a renewed focus on devastating ransomware attacks.
Ransomware attacks, which lock up systems and force victims to pay ransoms to save their data, have skyrocketed over the past decade. The number of global ransomware attacks rose more than 150% last year, according to the cybersecurity firm Group-IB.
As a high-growth segment of the tech industry, investing in cybersecurity offers investors lots of upside in the decade ahead. But if picking the best security stocks isn’t your thing, there are several exchange traded funds (ETFs) that allow an investor to participate in the growth of the whole cybersecurity industry.
Of these, First Trust Nasdaq Cybersecurity ETF (CIBR) is the largest, with $3.5 billion in assets under management, and composed of more than 40 stocks.
Is Zoom’s boom over?
Zoom Video Communications Inc. (ZM) reported better-than-expected first-quarter results, with sales growth of 191%. Its shares rose 4% in extended trading after initially falling as much as 5% as the company showed signs of a looming slowdown.
Yes, shares in Zoom Video Communications Inc. (ZM) soared during the coronavirus emergency, but what’s the outlook for Zoom stock as the U.S. economy normalizes?
In the post-pandemic landscape, retaining small businesses as well as corporate accounts will be one key to Zoom’s continued success. Another, will be its ability to convert free users into paying subscribers. Zoom may be downgraded from a buy rating, but the current consensus is to hold stock in Zoom Video Communications Inc.
What Else is Hot
- Lululemon gets on the winner’s podium: Athletic apparel company, Lululemon’s (LULU) quarterly sales leaped 88% from last year as stores reopen.
- Canopy high on CBD-adjacents: Canopy (CGC) launched a portfolio of THC drinks in Canada, capturing a 35% dollar share of the entire category.
- Android joins the club: Clubhouse added one million installs for the Google mobile operating system.